With the growth in the developed markets approaching saturation, consumer packaged goods (CPG) companies began looking toward developing and emerging markets for future growth. Global CPG major Unilever Plc. was one of the companies that had a presence in several emerging markets including India, where it operated through its subsidiary Hindustan Unilever Ltd (HUL). The case focuses on HUL's strategy for growing two mature brands with mass appeal – Lifebuoy (bath soap) and Sunsilk (shampoo), by targeting new segments in innovative ways. In 2002, the company started a marketing program:-
Lifebuoy 'Swasthya Chetna' ('Health Awakening'), targeting the bottom of the pyramid (BoP) segment in India. Sunsilk Gang of Girls (GoG), targeting the increasing number of Internet-savvy girls. In 2003-04, the sales of Lifebuoy grew by 20%. According to Unilever, the sales of Lifebuoy were showing "directly attributable growth"as sales from the eight states where the LSC operated was particularly strong. In 2005, the sales of the brand grew by 10%.
This case help the student to understand:
1.HUL's success in India was due to its ability to cater to all segments by adapting products, prices, and promotion (Marketing Mix) to each of them. 2. Repositioning of the Brand.
2. Issues and challenges faced by global companies operating in emerging markets. 3. the critical factors for succeeding in emerging markets by looking beyond the stereotypical image of these markets. 4. the issues and constraints in targeting the huge BoP (Bottom of the Pyramid) segment; 5.issues and constraints in targeting the youth population in the rapidly changing scenario in India 6. the reasons for Unilever's success in India and discuss whether the company can leverage on this learning in other emerging markets.
PROBLEM STATEMENT :
Decline in Market Share
The market share of the Unilever company for Lifebuoy started declining due to his competitors....